Retirees opting out of state dental insurance

Tuesday

Sep 29, 2009 at 12:01 AMSep 29, 2009 at 8:00 PM

Five percent of the 76,000 people covered by Illinois’ dental plan for retired state workers and their families will drop that insurance as of Thursday, when the state institutes monthly premiums. The number of people opting out is “about what we expected,” said Susan Hofer, spokeswoman for the Illinois Department of Central Management Services. As of last Thursday, Hofer said, 4,009 people had notified the state they wanted to drop the coverage rather than pay monthly premiums. This will be the first time state retirees have been charged premiums for dental coverage.

Dean Olsen

Five percent of the 76,000 people covered by Illinois’ dental plan for retired state workers and their families will drop that insurance as of Thursday, when the state institutes monthly premiums.

The number of people opting out is “about what we expected,” said Susan Hofer, spokeswoman for the Illinois Department of Central Management Services.

As of Thursday, Hofer said, 4,009 people had notified the state they wanted to drop the coverage rather than pay monthly premiums. This will be the first time state retirees have been charged premiums for dental coverage.

The premiums will be $11 for one retiree, $17 for one retiree and one dependent, and $19.50 for one retiree plus two or more dependents.

“I think it’s still a good deal,” Hofer said.

Anders Lindall, spokesman for Council 31 of the American Federation of State, County and Municipal Employees, said the union is “disappointed that the state has effectively scared thousands of retirees into dropping their very valuable dental coverage.

“We know that many retired state employees are barely eking out a living on their very modest pension benefits. Any unforeseen expense can be a real barrier to health care, in this case dental care, for them. We advised our retired members not to drop this coverage,” Lindall said.

Retired workers, their dependents and survivors were notified by the state in August that they had until Sept. 18 to decide whether they wanted to remain in the dental plan or pay premiums.

As one way of addressing the state’s multibillion-dollar shortfall for the fiscal year, Gov. Pat Quinn’s administration plans to charge retirees the same dental premiums as active employees. The move will save an estimated $12 million a year.

Because the new dental premiums will begin three months into the fiscal year, Hofer said state officials believe that the premiums will lead to a total of $10.4 million in savings in fiscal 2010.

Officials expect to incur $1.5 million less in dental bills because fewer people will be covered by the program. And the premiums from retirees are expected to generate $8.9 million for the rest of the fiscal year, Hofer said.

Even with the new premiums, the state will cover at least two-thirds of the total cost of dental insurance for retirees, Hofer said.

AFSCME contends the premiums should have been negotiated with the union first.

The union has filed a grievance challenging the premiums, but Hofer said the grievance hasn’t been resolved, so the premiums will take effect Oct. 1.

Lindall said AFSCME has told state officials that the union has many ideas for saving money on state medical and dental insurance to avoid reducing benefits or shifting more costs to workers.

“They have not taken us up on our offer to explain these things to them,” Lindall said.

AFSCME’s ideas include creation of a preferred-provider network of dentists that would save an estimated $10 million a year or more. Such a network would involve the state paying certain dentists lower rates in return for patients having financial incentives to use those dentists, Lindall said.

Another idea would have the state negotiate better rates for prescription drugs, which could save $13 million a year, Lindall said.